Allianz Nederland, the Dutch arm of the European insurer, and Lancashire County Council, the UK local authority, are set to add assets worth €4.5bn ($5.5bn) to the pool of securities available for lending.

The additions will help brokers meet growing demand for securities from hedge funds, which borrow securities in order to take short positions. The hedge fund industry is one of the most significant users of the securities lending market. It is estimated as having $1.1 trillion of assets under management and is growing at 30% a year.